SMTMTotalC18004852285P7003501050SS515150665Total30159854000The expected values are computed in terms of row and column totals. In fact, the formula is
Eij=TRi×Cj,where Ri corresponds to the total sum of elements in row i, Cj corresponds to the total sum of elements in column j, and T is the grand total.
E11=40003015×2285=1722.31875
E12=40003015×1050=791.4375
E13=40003015×665=501.24375
E21=4000985×2285=562.68125
E22=4000985×1050=258.5625
E23=4000985×665=163.75625 The table below shows the calculations to obtain the table with expected values:
Expected ValuesSMTMTotalC1722.32562.682285P791.44258.561050SS501.24163.76665Total30159854000Based on the observed and expected values, the squared distances can be computed according to the following formula: E(E−O)2. The table with squared distances is shown below:
Squared DistancesSMTMC3.50410.724P10.56432.336SS0.3781.156 The following null and alternative hypotheses need to be tested:
H0: The two variables are independent.
H1: The two variables are dependent.
This corresponds to a Chi-Square test of independence.
Based on the information provided, the significance level is α=0.05, the number of degrees of freedom is df=(2−1)×(3−1)=2, so then the rejection region for this test is R={χ2:χ2>5.991}.
The Chi-Squared statistic is computed as follows:
χ2=3.504+10.724+10.564+32.336+
+0.378+1.156=58.661Since it is observed that χ2=58.661>5.991=χc2, it is then concluded that the null hypothesis is rejected.Therefore, there is enough evidence to claim that the two variables are dependent, at the 0.05 significance level.
1. Only A statement is correct.
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